Global Market Insight | Vienna

January 19, 2022

Engel & Völkers, a global real estate company, proudly serves communities in more than 30 countries. From the Americas, through Europe and Asia, down to Africa, and many destinations between, Engel & Völkers advisors are not only experts in their local market experts but also global leaders with connections on a worldwide scale. This month we’re featuring the capital of Austria, Vienna and sharing market highlights from our advisors from Engel & Völkers Vienna.

Famous for its magnificent architecture like the Gründerzeit period, Sacher cake and the Viennese waltz, Vienna is home to almost a third of all Austrians. For ten consecutive years, the capital city has been ranked first in the Mercer Quality of Living Index for its high quality of life as a world-class city.

Vienna Real Estate Market

In the first quarter one 2021, home prices rose by 10.94%, the most significant growth the city has had in eight years. After this landmark quarter, the price index continued to increase through the end of the year.

“As the gateway between Eastern and Western Europe, Vienna is one of the most attractive real estate markets in Europe. On one hand, the metropolis offers world-famous architecture, and on the other a very attractive price level with great upward potential. Vienna is THE capital city with a growing population and a great start-up community that is becoming a magnet for many new businesses. All in all, Vienna is an extremely attractive city to live, work and invest in.”

-Philipp Niemann, Managing Director, Engel & Völkers Vienna

The most sought-after districts in Vienna

Inner City

The world-famous 1st District is one of Vienna’s most popular residential areas. The streets are lined with luxury properties and penthouses with high-quality finishings, exclusive shops of Kärntner Straße and sights such as St. Stephen’s Cathedral and the Hofburg—Vienna’s Imperial Palace.

Josefstadt

Northwest of the 1st District, Josefstadt has become an increasingly popular neighborhood. It is the smallest district in the city, located near cultural hotspots while remaining virtually unaffected by mass tourism. The middle-class area has a strong infrastructure which has contributed to dramatic increases in property prices, with the average home price increasing by 100% since 2013.

Hietzing

Hietzing, the 13th District located in the southwest of Vienna, is one of Vienna’s most upmarket residential areas. In Hietzing, homebuyers can buy beautiful grand villas with quiet surroundings. Schönbrunn Palace and the Lainzer Tiergarten provide generously sized outdoor areas for residents and visitors alike to grab a breath of fresh air.

Währing

Due to its proximity to the city center and abundant green spaces, Währing is one of the most desirable residential areas in the city. The neighborhood is a magnet for young families and students, with small shops and boutiques up and down the streets. The area is also home to the Kutschkermarkt, a street market known for its exclusive delicacies, weekly farmer’s market and fine restaurants.

Döbling

The 19th district of Vienna, Döbling, is a green district situated on the edge of the Vienna Woods. With its classic “Wienerwald” villas, Döbling has a reputation as an exclusive residential address. The slopes of the Kahlenberg hill are populated by numerous wineries, and century-old taverns serve authentic regional wines.

The average price in the top segment

Detached properties in the top segment in Vienna’s most popular residential areas cost between $7,400,000 and $11,300,000 USD, while apartments cost between $3,400,000 and $11,300,000 USD.

Trends and developments in the Vienna market

More new buildings offer a contemporary lifestyle

The banks of the River Danube are home to new, trendy residential towers—like Marina Tower—with luxury apartments.

Magnificent old buildings are being modernized

19th-century architecture in Vienna is stylistically diverse. The 1st District features properties in the Biedermeier style that was popular between 1800 and 1850. The Ringstrasse around the city center features various buildings with decorative façades that were added during the Gründerzeit period between 1840 and 1918. Today, many Biedermeier and Gründerzeit buildings are being refurbished and updated, creating more high-quality living spaces in the city.

Properties in prime locations are coming onto the market

The older generation has been passing on generous plots of land to heirs who frequently decide to sell the property. Despite the often old-fashioned buildings on these plots, they are well-located in the middle of the countryside and command high sale prices.

Upsizing homes

The shift towards remote working from home has increased the demand for large-scale living areas and outdoor spaces. Properties with an extra room and homes with a garden or terrace are becoming even more popular.

Engel & Völkers Vienna

Located in a beautiful historic building, Engel & Völkers Vienna team of expert advisors work diligently to present the top locations in Vienna to their clients. With 23 total districts, Vienna is a diverse region that boasts internationally renowned real estate offerings. From mountain villas, to sprawling country estates and modern city apartments, it is no surprise that Engel & Völkers Austria has expanded to 18 shops in its 40 years of operation.

For further information about the property market in Austria and/or referrals please contact:

Philipp Niemann
Managing Director of Engel & Völkers Vienna
+43 1 961 5000

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